S. Korea’s March exports rise as pandemic drives teleconference demand

SEOUL: South Korean exports rose 10.0% in the first 20 days of March year-on-year as lockdowns across the world to prevent the coronavirus fuelled demand for teleconferencing technology and components.

Outbound shipments of semiconductors, the nation’s major export, jumped 20.3% on-year, Korea Customs Service data showed yesterday, better than a 15.4% rise a month earlier.

“Demand from cloud computing firms have boosted sales of server chips, while an increase in telecommuting in the United States and China has also been a main drive to huge server demand,“a trade ministry official told Reuters.

“But exports in April and May will worsen,“the official added, reflecting the significant fall in exporting contracts seen from February.

Average exports per working day slid 0.4% during the period when eliminating the calendar effect, slower than a 9.3% decrease in

Feb 1-20 period. There were 1.5 more working days in the first 20 days of this month compared with the same period last year.

Separately, a survey of 915 exporters yesterday showed Korean firms overwhelmingly expect shipments to fall in the second quarter as lockdowns and quarantines across the world hit global demand.

The Korea International Trade Association index of the outlook for exports for the AprilJune

period plunged to a seven-year low, as demand from trading partners declined and raw material costs soared.

South Korea will unveil details of crisis funds it is preparing to put a floor under crashing bond and stock markets today. They will include setting up of funds to buy corporate bonds to help companies facing a credit crunch, and steps to boost short-term money market liquidity, the presidential office said. – Reuters